UK enacts bill stating 'digital assets are property'

The UK has enacted a bill that defines virtual assets (cryptocurrencies) and stablecoins (virtual assets whose value is pegged to fiat currency) as property. This is expected to provide a clear legal basis for ownership and recovery procedures for digital assets.

On the 3rd (Korean time), the crypto-focused outlet Cointelegraph reported that the House of Lords' 'Property, Digital Assets etc Bill' received Royal Assent from King Charles III and has come into force as law.

The law specifies that assets in digital form can be considered personal property even if they do not fully fit the traditional categories of 'things in possession' or 'things in action.' This reflects the 2024 recommendation of the Law Commission for England and Wales that digital assets can possess characteristics of both types.

The law codifies the existing case law principle treating digital assets as personal property. UK digital asset groups such as 'BPUK' explained, "The legal doctrine on digital assets, which relied on case-by-case rulings, has been clearly defined," and "legal certainty has increased in proving ownership, recovering stolen assets, and handling bankruptcy and inheritance."

The groups emphasized that the measure strengthens consumer and investor protection and enables the clear recovery of assets lost to theft or fraud. They also said it is expected to provide a foundation for tokenized assets, new financial products, and digital market growth.